State takeover of Wachusett school district finances possible

Published Wednesday October 10, 2012 at 6:00 am

A state takeover of the Wachusett Regional School Districtís finances could be the solution to the districtís fiscal 2012 $1.2 million in overspending, school committee member Julianne Kelley reported to the board last night.

Ms. Kelley said she learned in conversations with state Department of Elementary and Secondary Education representative Christine Lynch that DESE and the state Department of Revenue could form a control committee for the districtís finances, and then allow them to borrow the funds to cover the shortfall. The departments would take over the districtís finances until they believed the district could function independently, Ms. Kelley said.

Superintendent Thomas Pandiscio said he believed the potential methods to deal with the deficit could leave it at about $160,000 after transfers from grants and revolving accounts, but that on Dec. 1, the DOR would still find the district with a deficit for the entire $1.2 million.

Mr. Pandiscio said DESE and DOR wanted to see the districtís audit report and its accounting for revolving accounts and grants before weighing in.

The school committee and administration scrambled in July and August to cover the $1.2 million in overspending after discovering the mistake, as well as a $1.5 million under-prediction for fiscal 2013. The discoveries resulted in the firing of business manager Peter Brennan.

The districtís transfers to cover the fiscal 2012 shortfall coming after July 15 will not be allowed by DOR, school committee Chairman Duncan Leith said, leaving the districtís 2012 books in a deficit.

The district expects its yearly audit to be completed soon. A request-for-proposals for a company to conduct a phased forensic audit is in progress with the districtís business and finance subcommittee.

The committee approved using $4,850 for a procedural audit by the Massachusetts Association of Business Officials, one members hope will uncover any procedures that need to be changed to prevent future overspending or shortfalls.